The rail project, which will be connected to Holly Energy's crude oil pipeline transportation system in southeastern New Mexico, will have an initial capacity of up to 70,000 barrels per day and will enable access to a variety of crude oil types, including West Texas Intermediate, West Texas Sour and Western Canadian Select.

The project will provide both additional crude oil takeaway options for producers as crude production in the region continues to grow and an expanded set of crude oil sourcing options for HollyFrontier. Project completion is expected by early 2014.